Cabinet Committee of Economic Affairs (CCEA) for approval," Minister
of State for Heavy Industries and Public Enterprises G M Siddeshwara said in a
written reply in the Rajya Sabha. "As regards the fifth unviable public
sector company namely Hindustan Cables Ltd, a draft Cabinet note has been
circulated for inter-ministerial consultation," he added. The Cabinet had
earlier given in-principle approval for shutting down the five PSUs. With the
individual proposals for closure, the Ministry of Heavy Industries and Public
Enterprises will approach the Cabinet for funds to grant VRS to some 2,800
staffers of the five state-owned firms. "We are going to give them
(employees) good package through VRS," Union Heavy Industries and Public
Enterprises Minister Anant Geete had earlier told PTI. While employees drew
salary as per the 1997 pay scale, VRS will be based on the 2007 figure, Geete
had said. Earlier, the government found it tough in shutting down five
sick PSUs even after the move was cleared by the cabinet as the Prime
Minister's Office and the defence ministry sought a review of the decisions.

The closure of Hindustan Cables has been held up due to the
defence ministry, which showed interest after some of the employees approached
the government seeking a review of the move. The hold up in case of four other
state-run companies - three entities from HMT and Tngabhadra Steel -is due to
the some objections made at the PMO level.

While approving the closure, the cabinet had said the
employees should be given voluntary retirement scheme at the latest scales to
make the deal attractive. For those who didn't opt for VRS, the plan was to give
them three months notice under the Industrial Disputes Act and get rid of the
employees.

The heavy industry department suggested that moveable assets
be disposed off through an auction for which MSTC is expected to be roped in.